Five-Unit Mixed-Use
New
For Sale
$769,000
89 N San Gorgonio Ave, Banning, CA 92220
Freestanding downtown property combines commercial suites with a second-floor studio apartment and an adjoining excess lot.
Property Size3,600 SF
Days on Market5
Property Features for 89 N San Gorgonio Ave
General Information
Standard status
Active
Size
3,600 SF
Property subtype
Commercial
Building Details
Building Size
3,600 SF
Year Built
1964
Listing Agency:
Keller Williams Realty Redlands
Listed By:
Teri Alvarez · License #01498790
(909) 330-8123
Source:
Elliman
Added: Sep 16
Changed: Sep 19
Last Checked: Sep 19 at 10:39AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Keller Williams Realty Redlands
Investment Insights
Based on property information with market context.
This freestanding mixed-use property contains 3,600 square feet configured as five individual units. The existing arrangement includes a street-facing candy shop, barber shop, engineering office, office or retail suite, and a second-floor studio apartment. One office or retail unit is vacant, while the remaining spaces reflect a combination of commercial and residential occupancy. The building was constructed in 1964.
An adjacent excess lot brings the combined site to 6,097 square feet, or 0.14 acres. The additional parcel includes drought-tolerant landscaping and a wall mural. The property is located within Banning’s established Downtown Commercial District and an Opportunity Zone, with civic, retail, dining, and service businesses in the surrounding area. Banning’s Downtown Revitalization and Complete Streets Plan addresses circulation, pedestrian connections, streetscape improvements, and downtown redevelopment.
An adjacent excess lot brings the combined site to 6,097 square feet, or 0.14 acres. The additional parcel includes drought-tolerant landscaping and a wall mural. The property is located within Banning’s established Downtown Commercial District and an Opportunity Zone, with civic, retail, dining, and service businesses in the surrounding area. Banning’s Downtown Revitalization and Complete Streets Plan addresses circulation, pedestrian connections, streetscape improvements, and downtown redevelopment.
Key Highlights
- 3,600‑square‑foot freestanding building configured into five individual units
- Combined 6,097‑square‑foot / 0.14‑acre site with adjacent excess lot
- Unit mix includes candy shop, barber shop, engineering office, office or retail suite, and studio apartment
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$51,602
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.71%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,032,040
$1.0M
Cap Rate 7%
$737,171
$737.2K
Cap Rate 9%
$573,356
$573.4K
Market Conditions
NOI Build-Up for 3,600 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$77.8K $21.60/SF
− Vacancy
−$4.0K −$1.12/SF
EGI
$73.7K $20.48/SF
− OpEx
−$22.1K −$6.14/SF
NOI
$51.6K $14.33/SF
Area
Riverside County, CA
Vacancy
5.20%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,032,040
Cap Rate 7%
$737,171
Cap Rate 9%
$573,356
Alternative Uses
Best Use
Retail
$737.2K
$645.0K – $860.0K
NOI $51,602 @ 7.0% cap · market cap 6.71%
Second Best
Mixed Use
$476.4K
$416.8K – $555.8K
NOI $33,345 @ 7.0% cap · market cap 4.34%
Theoretical Best
Office A
$1.08M
$943.7K – $1.26M
NOI $75,495 @ 7.0% cap · market cap 9.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
601
Businesses Nearby
Explore this area
Business Placement
Demographics for 92220, CA
32,947
Population
13,258
Households
2.5
Avg Household Size
43
Median Age
17%
College-Educated
82%
High-School Grad
141.3 sq mi
ZIP Area
233
Density / Sq Mi
$59,116
Median Household Income
$35,428
Median Earnings
$1,499
Median Rent
$324,800
Median Home Value
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Market
Vacancy Rate% for Retail in West region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Freestanding downtown property combines commercial suites with a second-floor studio apartment and an adjoining excess lot.
Where is this mixed-use property located?
The property is located at 89 N San Gorgonio Ave Banning, CA.
What is the asking price?
The asking price for this property is $769,000.
What are key features of this property?
This property features: 3,600‑square‑foot freestanding building configured into five individual units; Combined 6,097‑square‑foot / 0.14‑acre site with adjacent excess lot; Unit mix includes candy shop, barber shop, engineering office, office or retail suite, and studio apartment
